China Press Review – May 8, 2020

Press review

China coronavirus stimulus: what measures have been used to combat the economic impact of Covid 19?
Faced with the unprecedented economic impact of the coronavirus outbreak, China has rolled out numerous measures to aid the world’s second largest economy    In response to the global financial crisis in 2008, China implemented a massive 4 trillion yuan (US$564 billion) stimulus package

80 million Chinese may already be out of work. 9 million more will soon be competing for jobs, too
The 26-year old tech worker spent the last year jumping from one startup to another in what already felt like a precarious job market. But when he was laid off again in January, this time from a Beijing-based internet company, he never expected things to become as difficult as they are     China’s economy just shrank for the first time in decades. It could still eke out growth this year    Last year “already felt like living in a hell mode,” Wang told CNN Business in a telephone interview. “But 2020 is even worse. The coronavirus is like a head-on blow.”

China starts campaign to help new graduates find jobs as economy slumps
Initiatives include recruiting more teachers, expanding army enlistment, more hiring by state-owned firms, and more subsidies for small businesses   China is facing daunting economic problems as a result of the coronavirus pandemic, with GDP contracting 6.8 per cent in the first quarter

US-China trade negotiators vow to save phase one deal on first call during pandemic
China’s Vice-Premier Liu He, US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer spoke by phone on Friday to discuss bilateral trade    China is not close to meeting US purchase demands as part of phase one deal, with the coronavirus disrupting supply chains on both sides

China urged to focus on domestic economy in next five-year plan to counter more hostile world
As China prepares its 14th five-year plan, researchers at one state-affiliated think tank predicted a more hostile global situation     Beijing urged to strengthen home-grown innovation and use vast domestic market to power economy post-coronavirus

China is one step closer to solving its patent commercialization problem
While most of China was sheltering in place this February, the world of university research experienced a breakthrough. It could solve longstanding problems that have made patent commercialization next to impossible for many researchers.    As China bids to become a global leader in technology, getting academy-industry transfers right is a key challenge. Measured by how many patents it files, China is a world leader in R&D. But lots of promising technology never leaves the lab because regulations make it easy for universities to get punished for commercialization and hard to get rewarded.

Beijing stresses positives after car and appliance sales raise hopes for coronavirus rebound
Government highlights strong consumer spending in selected areas over Labour Day holiday    But private analysts says recovery remains modest and warn it depends on the global outlook partners with LG to sell RMB 5 billion in goods using C2M has signed a partnership with South Korean manufacturer LG Electronics to sell RMB 5 billion ($70 million) worth of products on the e-commerce platform. Chinese e-commerce giants are increasingly partnering with manufacturers to facilitate product development and marketing. The trend propelled emerging e-commerce models such as consumer-to-manufacturer (C2M), which connects consumers and producers to manufacture tailored products at lower prices.

After US$2 billion losses, Chinese airlines are among top picks again at CICC, Citic as valuation trigger emerges
CICC and Citic Securities recommend airline stocks, citing a return in travel demand and plunging jet fuel costs     Air China, China Eastern and China Southern are trading below or near their book values, a key turning point in past stock prices

Coronavirus reveals lingering problems in Chinese health care system despite reforms, US experts say
China has made improvements since Sars outbreak, but current pandemic exposes some of the same structural problems, witnesses tell advisory arm of US Congress    A warning that China’s focus on quantity, speed and face can sometimes lead to quality problems and dubious statistics

How COVID-19 is reshaping China’s medtech industry
This article draws on McKinsey’s experience helping clients navigate the international medtech landscape, as well as conversations with company executives and a survey of around 23 general managers (GMs) leading medtech businesses in China.Medtech companies still find China an attractive market and are confident in its growth outlook. But many aspects of the way in which they operate have changed profoundly, and perhaps permanently. These key themes are set out below, together with McKinsey’s views on what it will take to succeed.

Multinationals retain confidence in China
Despite global concerns about world economy gutted by the coronavirus pandemic, China remains a hot spot for foreign investors, according to the Ministry of Commerce.     The ministry released data showing that foreign investors are maintaining optimism and confidence about their long-term operations in the country.

Coronavirus: COVID-19 ‘has exposed fundamental tensions’ between EU and China
Former Australian Prime Minister Kevin Rudd says the COVID-19 pandemic has exposed “fundamental tensions” between Brussels and Beijing.    Rudd, now president of the Asia Society Policy Institute, says the emergence of the new coronavirus had also disrupted Chinese global strategy in attempting to replace their declining relation with the US via stronger ties with the European Union.

How China Is Losing Europe
With a clumsy and ugly disinformation campaign, China is trying to project “soft power” as the U.S. loses its cachet. That’s backfiring.

EU defends censorship of letter in Chinese newspaper
EU officials have backed a decision to accept China’s censorship of a letter that ran in a Chinese newspaper. A sentence referencing China as the origin of the coronavirus outbreak was removed before publication.

Beijing is moving steadily to bring Hong Kong closer into the fold
With arrests of pro-democracy figures and central government oversight expanding, Beijing is pushing for patriotic education and an anti-sedition law – moves likely to reignite Hong Kong protests, which, in turn, could earn a crackdown

Malls, supermarkets, hotels to be fully reopened in China
China is set to orderly open up public places and entertainment venues, according to a guideline issued by the State Council on Friday.       Shopping malls, supermarkets, hotels, restaurants and other public places will be fully reopened on the premise of implementing epidemic prevention measures, the guideline said.

Shanghai Disneyland’s tickets sell out within minutes ahead of May 11 reopening, as coronavirus outbreak eases in China
Tickets during the reopening phase are 399 yuan (US$56) for regular days and 499 yuan for weekends   The theme park will be limiting visitors to one-third of its normal capacity of 80,000 daily guests

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